The Research On Causes And Prevention For Employee Relationship Risk In Manufacturing Industry

In recent years, the competition for domestic and international markets in themanufacturing industry is increasingly deteriorating and the operating environment isbecoming more complicated. Against such a background, the enterprises are faced withenormous uncertainties and potential risks and thus their managers pay more attention to riskmanagement. In2008, the implementation of Labor Contract Law has greatly improved thecosts of labor, increased the risks of employment and added great difficulties to employment.In that same year, the global financial crisis caused by the occurrence of subprime crisis in theUnited States confronted the manufacturing industry with huge risks. In particular,labor-intensive manufacturing trades with low benefits and low additional values were evenexposed to existential crisis. Since2009, the phenomenon of labor shortage frequentlyemerges in manufacturing-intensive Pearl River Delta; a lot of enterprises in Jiangsu,Zhejiang and Shanghai around the Yangtze River Delta are also encountered with difficultrecruitment. In2010, a series of shocking events took place one after another. For example,large-scale personnel strikes in appealing for increasing salary, strengthening communicationand enhancing enterprises’ personal care occurred in foreign-owned and Taiwan-ownedmanufacturing enterprises; and serial suicides happened in Foxconn, a Taiwan enterprise.With the occurrence of such events, more appeals for constructing harmonious enterprises canbe heard. Scientific Human Resource risk management has also become extremely urgent.The major objective of this study lies in investigating the current conditions ofemployee relationship management in manufacturing industry in the Pearl River Delta, thusinducing reasons for causing the emergence of such risks. Meanwhile, based on knowledgeabout the causes for the formation of employee relationship risks, this study intends toestablish a series of pertinent risk prevention actions to deal with employee relationship risks,optimize the benefits and enhance the competitiveness of manufacturing industry. By meansof empirical research, this paper chooses the employee of manufacturing enterprises in PearlRiver Delta as subjects. It analyzes the data from the status survey on employee relationshipwith SPSS16.0statistic analysis software, and extracts and generalizes the causes for theemployee relationship risks. The survey results show that the causes of employee relationshiprisks in manufacturing industry can be divided into nine kinds: health condition (physical andpsychological), job satisfaction, team spirit, organizational support, insecurity at work,influence at work, recognition of job, demands for hiding emotions and quality of leader.This study makes use of correlation analysis and regression analysis to discuss the relevance degree among employee relationship risk sources, job satisfaction and rate of employeerelationship risks. The results show that:(1) employee relationship risk source has significantpositive correlation with the job satisfaction;(2) job satisfaction is significantly negativelycorrelated with the rate of employee relationship risks;(3) the dimensions of health condition(physical and psychological), team spirit, organizational support, influence at work andrecognition of job in the risk sources of employee relationship and the rate of employeerelationship risks demonstrate significant negative correlation. This study also useindependent-sample T test and one way ANOVO analysis to analyze and examine theinfluence of such variables as gender, age and service years on the rate of employeerelationship risks The results indicate that: The rate of employee relationship risks hassignificant difference in terms of gender, but has not significant difference in terms of age andservice years. Based on conclusions about causes analysis of employee relationship risks, thisstudy intends to establish employee relationship risk prevention actions. Thus, these measurescan facilitate enterprises to complete employee relationship risk prevention to avoid theemergence of risks and reduce disadvantageous influences brought to corporate operation byrisks.